President elect Obama is proving to be pragmatic

A short squeeze of historic proportions is coming due to increasing credibility of president elect Obama.

Nixon had detent with China, and Regan had detent with the Soviet Union. Who would have expected such hawks to make detent with communists? But that was logical because they had credibility. So too, only the Democrats can fix the GM problem because they have the credibility needed to face down union excesses that have brought down the American auto industry.

Too much risk is what makes markets and business go down in value. Uncertainty is risk, and Obama has begun to reduce uncertainty. Main Street hates uncertainty too. Almost everyone hates uncertainty.

The people in this world who think about, build, and invest in world economies are beginning to see that president elect Obama has a surprising lot of Blue-dog Democrat qualities that could allow him to wrestle the squirmy financial markets back into the old conventional recession box far away from the new "D" quagmire. We hope he rationally explains to the big three automotive companies that they must go through bankruptcy and shed the practice of paying workers 90% of their salary when they have no work to do and allow early retirement at age 55. Auto workers should be required to work for a living and perhaps then they would be competitive again.

And we certainly hope president elect Obama will not allow unions to take away the American traditional right of workers to always have a secret ballot for votes. Taking away the secret ballot would unfortunately be old world totalitarianism and gangsterism condoned by the Democrat party in power.

With Blue-dog programs, president elect Obama will get the support of most Americans and the economic crises of fear should abate.

Next we may be surprised by president elect Obama's energy policy. Europe is way ahead of America there and has realistic goals of up to 10% solar related energy sources. America though has mentally challenged environmentalist who on one hand want a 20% solar energy goal but on the other hand don't want it in their back yard (like windmills in places like off the shore of Massachusetts where they could work efficiently). They would waste ten times the development costs to double solar output using solar panels that harvest less energy than they require in manufacturing. European leaders and the exceedingly rare sane world environmentalists support clean nuclear energy but some American environmentalists prefer going back to dirt roads and burning dry cow dung in kitchen stoves like they do in India (some want to ferment it first to make gas in our back yards to burn).

But president elect Obama mentioned nuclear energy during the debates as the longer term solution. So perhaps president elect Obama will start a nuclear generation program which would actually make more sense.

As for the market, a short squeeze of historic proportions is about to begin as uncertainty wanes.